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Corporate Fraud: How Private Investigators Protect Businesses


Most people already know what criminal charges to avoid daily. However, the same can’t be said about business law. Business fraud is time-consuming and costly to recover from. If not detected early, data breaches or accounting mistakes can lead to federal charges that could quickly destroy the reputation of your business. When navigating the business world, hiring a private investigator is important to help you avoid and uncover legal mistakes that could lead to fraud. Here is how a private investigator can help you avoid corporate fraud.

Detecting Money Laundering

Money laundering is when an individual or criminal enterprise uses your business or company to conceal money obtained illegally and make it appear legitimately obtained. Governments worldwide have stepped up to combat this activity by making financial institutions implement systems that can detect and report suspicious money transfer activities. Hiring a private investigator with an anti-money laundering background can help you look out for red flags of suspicious transactions within your company that could be related to money laundering. 

Avoid Data Breach Charges

Accessing another business’s information without authorization is considered a data breach. Data breaches don’t have to be intentional and can be caused by internal and external factors. The Federal Trade Commission tracks data breaches, and if they suspect a breach wasn’t reported to the authorities in time, they will consider it a crime. 

Private investigators help businesses avoid data breaches by doing vulnerability assessments of their security networks. After thorough penetration testing, they will provide you with a report of how secure your security is. In the event of a breach, they also provide expert testimony on how you did everything to prevent the incident. 

Financial Statement Fraud

This is a company’s deliberate misinterpretation of their financial statements. Financial statement frauds are usually a motivation to inflate the value of the business, for personal gain, or to obtain bank loan approvals. To protect yourself from this, have a private investigator with an auditing background analyze your financial numbers compared to the industry norms. Additionally, have a system for your business that segregates the duties of employees to ensure that no one unauthorized can view or alter the financial statements.

Discrete Corporate Investigations 

Private investigators can do their work without getting noticed. They maintain discretion in their work to avoid disturbances and disputes. In addition, their objectives will not be influenced by factors affecting their report on internal personnel. This ensures that issues are resolved relatively without the involvement of personal biases or connections of people involved. 

Corporate Risk Management

Proactiveness leads to success. Hiring private investigators to identify gaps in your business procedures and policies will reduce financial losses, protect your company’s reputation, and ensure trust from your clients and employees. Additionally, the investigators will assess the risks and come up with measures on how to minimize them. 


A single fraud case is enough to destroy a business’s reputation and sources of revenue. Private investigators have the best chance of solving these cases timely and discreetly. They are experienced with legal procedures and have undergone training in evidence collection, surveillance, and forensic analysis. So, take the steps to protect your company from potential lawsuits and charges by hiring a private investigator. 

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